A new acquisition in Reliance Industries shopping bag - Lithium Werks for USD 61 million
The oil to telecom conglomerate made yet another addition in its kitty through Reliance New Energy Ltd, its wholly-owned subsidiary by acquiring all assets of Lithium Werks of Netherlands.
In its exchange filing on Monday, the company announced that the acquisition includes a 100% stake in Lithium Werks Technology B.V. (LW Tech) and Lithium Werks China Manufacturing Co Limited (LW China) along with key business contracts and hiring of existing employees as a going concern for a total transaction value of USD 61 Million including funding for future growth.
RNEL will set up a new Company to undertake the acquisition in the Netherlands. The new company will issue shares to the founders and existing employees at closing and after such issuance, RNEL will hold 85.8% of the new Company.
Lithium Werks, incorporated in the Netherlands, is a leading provider of cobalt-free and high-performance Lithium Iron Phosphate (LFP) batteries with operations in the US, Europe and China and customers worldwide.
The acquisition is the second big move by the biggest private-sector giant in India in less than three months to expand its clean energy portfolio. On December 31, 2021, the company announced its acquisition of sodium-ion battery technology provider Faradion for USD 130 million.
"Along with Faradion, Lithium Werks will enable us to accelerate our vision of establishing India at the core of developments in global battery chemistries," said Reliance Industries head Mukesh Ambani.
With the upsurge in demand for Lithium Iron Phosphate batteries and Lithium Werks' complete range of LFP technologies, Reliance plans to seize opportunities in the global market. It further aims to leverage the experience of a senior management team which brings the tremendous experience of innovation across the LFP value chain.
Today, Reliance Industries is trading at Rs 2399.85 apiece down 0.77% or 18.70 at 11.50 am on the bourses.
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